The ES is testing the HVN of the Balance Area contains the recent yearly high. A close above 1457 signals that high is likely to be exceeded. A close below 1436 is an initial signal an important top may be in place.
The YM is leading the charge higher. A close above 13520 signal new highs; a close below 13395 signals an important top may be in place.
The Naz (ENQ) is lagging the YM and ES which merits watching going forward. It has led the bull market over the past three years and if it cannot join the party to new highs it is a signal of yet another divergence at market highs. A close above 2849 signal new highs; a close below 2780 signals an important top may be in place.
The TF is showing a lot of relative weakness in the present rally. It is not unusual for the TF to “catch up” with a sudden burst into a relentless day long rally, but if it continues to lag the TF, like the ENQ, is signaling a warning about the staying power of the rally if the YM and/or the ES rally to new highs.
A close below 827 is likely very bearish for the overall market.
